0 Suppose Steel City manufactures cast iron skillets. One model is a 10-inch ski

Question

0 Suppose Steel City manufactures cast iron skillets. One model is a 10-inch skillet that sells for $28. Steel City projects sales of 700 10-inch skillets per month. The production costs are $13 per skillet for direct materials, $5 per skillet for direct labor, and S3 per ski let or manufacturing overhead Steel City has 75 10-inch skillets in inventory at the beginning o July but wants to have an ending inventory equal to 35% of the next month's sales. Selling and administrative expenses for this product line are $1,900 per month. How many 10-inch skillets should Steel City produce in July? O A. 700 skillets O B. 870 skillets O C. 945 skillets OD. 1,020 skillets Click to select your answer.

Explanation / Answer

Units to be produced in July = 700+(700*35%)-75= 870 Option B is correct

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